“The sales quantity of passenger cars of GAC will be up to 70 thousand this year, and challenges thegoal of 80 thousand. What’s more important we realize profits this year”. Facing increasing sales, the General Manager of GAC passenger car—Song Wu said.

As the first A-class car of GAC passenger car, Trumpchi GA3, which will launch market on August, takes responsibility of market exploitation and reputation accumulation. However, under the background that joint venture brands raise stake in A-class car market, does GA3 able to rise from racks?

Fang Zhang, the chairman of GAC announced at the beginning of this year in public that “GAC will realize profits this year”.

“According to the sales by now, the quantity will achieve 70 thousand this year evenexclude GS3 newly offered, but we plan to challenge 80 thousand include the model”, Song Wu said.

According to statistics, sales of GAC passenger car achieved 34.2 thousand at the first half of this year. Compared with 10.2 thousand sales last year, it increases 235%. The enterprise will successfully achieve 7% increase goal in accordance with such a pace of development.

Based on dramatic increasing sales, “We realize profit of 15 million already at the first half year. It is no suspense to be no loss” Song Wu leaked. However, the “profit” mentioned by Song Wu does not include R &D and fixed asset cost sharing.

Wu Song told reporter of before that GAC invest 10 billion by 2 round investments. “GAC invested 6.8 billion at the 1st round, include 3 billion R&D fee, and 3.8 billion for passenger car company build; GAC announced 7 billion additional investment at the 2nd round investment, include 5 billion R&D fee and 2 billion for passenger car company”.

However, GAC faces challenges as well. According tostatistics, the market for A-class car of China is up to 32.9 million, almost up 20 percent on last year's same period. However, the market share of Chinese brands decrease from 29.9% at 2012 to 28.2%.

Meanwhile, German car increases from 23.5% to 25.1% at the segment market at the same time.What’s more, Japan car graduallyincreases power in China. After CRIDER of GAC Honda come into market on June, JADE of Dongfeng Honda will come into market at September as well. Meanwhile, GAC Toyota and FAW Toyota will launch new versions of Vios and Yaris too.

What’s more, competition among Chinese brands is very offensive as well. Newly Roewe 550 and Chery Yi Ruize will follow up GA3 launch market at July, which will be strongopponents for GA3. But the market share of Chinese brands is relatively stable. According to statistics, sales of D50 and R50 of Kai Chen remain stable around 3- 4 thousand at the first half year, and the figure of Po Chun 630 was around 5 thousand.

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